Spanish telecom company Telefonica said on Sunday it had agreed to sell its Peruvian unit, which recently filed for bankruptcy protection, to Argentina’s Integra Tec International for about 900,000 euros ($1.02 million).

Telefonica del Peru, the local business that was 99.3% owned by the Spanish company, said it ran into trouble following tax disputes and administrative decisions that put it “in competitive disadvantage”, despite being the largest telecom company in the South American country.

Telefonica del Peru filed for bankruptcy protection in February after the parent company booked a non-cash 314 million-euro writedown on the value of the Peruvian unit.

As part of the deal, Integra Tec will assume the 1.24 billion euros Telefonica’s Peruvian unit owes the local tax agency and bond holders.

Integra Tec also committed to buying the 0.7% of Telefonica del Peru shares held by minority shareholders.

Telefonica had bought the former state-owned Peruvian telecom monopoly in 1994 for about $2 billion.

Source: Globalbankingandfinance